NEW YORK (TheStreet) -- Hedge fund manager John Paulson made billions betting against housing, Jim Cramer said on "Mad Money" Wednesday. Now that Paulson's turned bullish, you should, too.

Cramer said he was shocked at how bullish Paulson was when interviewed at CNBC's Delivering Alpha conference earlier Wednesday. He said Paulson was known as one of the biggest bears betting against housing in 2008 and 2009, but now the famed fund manager told investors their best bet would be to buy a home, and their second would be to buy another one.

Paulson is now a fan of AAA-rated mortgage bonds, said Cramer, the same bonds that he despised just a few years ago. That news made Cramer reiterate his recommendations of companies such as Realogy, which have the most exposure to the sector.

Cramer said he's also still a fan of Bank of America and Wells Fargo, a stock he owns for his charitable trust, Action Alerts PLUS. Mortgage insurer Radian Group also makes the list as a buy, buy, buy.

Investors should still avoid the home builders, however, Cramer cautioned, as he's waiting to see if the most recent spike in interest rates have slowed home buying in the short term. But for the rest of the sector, it's simply too powerful to bet against.

When a sector's biggest bear becomes its biggest bull, it's time to listen, Cramer concluded.

Drinks and Snacks

What other takeaways did Cramer glean from the Delivering Alpha investor conference? He said fund manager Nelson Peltz had some of the best ideas, including PepsiCo, a Cramer fave, on the possibility the company could buy Mondelez.

Cramer said while Peltz felt PepsiCo could shoot to $178 a share if it bought Mondelez, even without such a deal he's still a fan because the company has excellent management and it's clear the drink and snack combination is working well. Peltz also liked DuPont, another Action Alerts PLUS stock, and Cramer agreed.

Other guests at the conference liked Express Scripts, Qualcomm and SandRidge Energy. Cramer said he agrees with the ExpressScripts call, but felt that Xilinx and EOG Resources would be better picks than Qualcomm and SandRidge.

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